Indian Stock Market: The Global Cues Nonsense

Indian equity markets have to come down substantially; there is no other remedy.  Over-valuation is palpable and apparent:

1. Earnings are down and will come down significantly
2. China is spending its way to riot-control is all they can achieve. Their buyers are broke and their factories are in standby mode
3. India has no fiscal room given its deficits
4. Elections are around the corner - never a positive indicator
5. Monetary easing is mostly done. Lower rates may help corporate borrowers but retail is not going to buy homes and refrigerators and TVs based on lower rates. Look around the world for confirmation. Secure jobs and growing incomes are needed
6. The Obama administration has proved every naysayer right, including me. They are trying to detox the economy with toxins; they are trying to inflate home prices which are already too high.
7. No one knows what to do, and they are right. Do nothing and let the losses wipe out the holders and rebuild is the solution, but Obama did not run on the “No We Can’t” slogan

Eastern Europe cannot pay its bills; Western Europe is left holding the bag. The mighty and powerful around the world are going broke, and they do not go down quietly.

There is a powerful storm brewing - a hurricane the likes of which I have never seen growing, and it is on the move. Get safely away from the shore. When you see a storm coming and its center is not veering away, it MEANS you are in its PATH.

Expect at least 25% down move on the Nifty.

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